New Delhi: An abolition of sales tax on Aviation Turbine Fuel (ATF) or jet fuel can stimulate air travel by about 9%, says a report named Maximising the contribution of aviation to the Indian Economy.
The report, prepared by Centre for Asia Pacific Aviation Ltd (CAPA) and commissioned by Tata SIA Airlines Ltd, says that abolition of sales tax on Jet fuel will reduce ATF cost by 20% and reduce operating cost by 7%.
Considering the reduction in cost is transferred to consumers "stimulated air travel demand by around 8 to 9%."
The report also says that the cost of jet fuel is 45% more expensive in India compared to neighbouring economies.
06/10/15 Economic Times
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The report, prepared by Centre for Asia Pacific Aviation Ltd (CAPA) and commissioned by Tata SIA Airlines Ltd, says that abolition of sales tax on Jet fuel will reduce ATF cost by 20% and reduce operating cost by 7%.
Considering the reduction in cost is transferred to consumers "stimulated air travel demand by around 8 to 9%."
The report also says that the cost of jet fuel is 45% more expensive in India compared to neighbouring economies.
06/10/15 Economic Times
